The Bullwhip Effect and
the Need for Coordination
in Supply Chains
\u2022Demand information is distorted as it travels within the supply
chain, so that different stages have different perspectives and
estimates of the chain demand
\u2022Trying to run each stage of the SC based on this partial
distorted demand information can have dire consequences for
all parties involved!
\u2022Replenishment lead time\u2191
\u2022Labor cost for shipping and receiving\u2191
\u2022Level of product availability\u2193
\u2022Relationships across the supply chain #@#*&@*!
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